Proactive Investors - Run By Investors For Investors

Prairie Mining shares drop on legal update for Polish project

Deal talks are ongoing though Prairie has updated investors on the latest complication in its legal dispute in Poland
mining
Prairie shares were down 11%

Prairie Mining Ltd (LON:PDZ) saw its shares drop 11% after updating investors on complications in its legal dispute in Poland.

The company last year filed a civil law claim against Poland’s Ministry of Environment (MoE) after it wasn’t awarded a usufruct agreement over the areas that form the Jan Karski mine.

After that, the Polish civil court granted an injunction preventing the MoE from granting prospecting, exploration, mining concessions or other usufruct agreements with any other party until the court proceedings were concluded.

READ: Tuesday’s stock market movers

Now, however, an appeal court in Warsaw overturned the civil court's decision and lifted the injunction.

“Prairie believes that the appeal court's decision is fundamentally flawed as it has the effect of retrospectively applying the August 2018 amended version of the geological and mining law and (incorrectly) concludes that Prairie did not have a priority right over the entire Jan Karski (Lublin) deposit,” the company said in a statement.

It added: “Prairie's civil law claim against the MoE for failure to grant the company with a mining usufruct agreement at Jan Karski remains ongoing and is not impacted by the appeal court's decision to lift the injunction.

“The appeal court's decision is further evidence of the unfair and inequitable treatment faced by Prairie as a foreign investor in Poland and the company will, therefore, consider all other actions necessary to ensure its rights are preserved.”

Additionally, the company noted that transaction talks are ongoing with Jastrzębska Spółka Węglowa SA (JSW) and, in a recent report, JSW said it would like to conclude the basic terms of a potential deal for the Debiensko and Jan Karski projects by the end of April.

Prairie shares were down 2.6p or 11% changing hands at 20.9p.

View full PDZ profile View Profile

Prairie Mining Timeline

Related Articles

Map of Queensland, Australia
March 01 2019
A recently published preliminary economic assessment shows an after-tax net present value of A$124 million and an internal rate of return of 24%
Yaouré Gold Project in Côte d’Ivoire
April 03 2019
The company is expected to post its latest production figures later this month.
Gold
March 07 2019
With operations in Honduras back on track and costs coming down, Wishbone's margins are set to rise.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use